Which of the Following Factors Is Not an Inherent Risk

question 63

Multiple Choice

Which of the following factors is not an inherent risk related to asset impairment?

• A)Management is normally not interested in identifying and writing down assets.
• B)Sometimes management wants to write down every potentially impaired asset to a minimum realizable value.
• C)Determining asset impairment requires a good information system,a systematic process,effective controls,and professional judgment.
• D)All of the above are inherent risk factors.

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, thereby having partial ownership and potentially receiving dividends.

Dividend Payout

The portion of a company's earnings distributed to shareholders, typically in the form of cash or additional shares.

Future Dividend

The dividends that a company expects to declare and pay to shareholders in upcoming periods, based on future earnings projections.

Dividend Payout

The portion of the earnings a company decides to pay to its shareholders in the form of dividends.